Strong growth: Increasing residential housing prices have boosted industry revenue

The Real Estate Services industry has performed strongly over the past five years. Rising property prices, increasing rents and strong demand from potential buyers and tenants have aided industry revenue growth, as a real estate agent's income is typically calculated as a share of a property's sale price or rental income. Industry revenue is projected to rise at an annualised 6.7% over the five years through 2019-20, to $5.1 billion. This includes an anticipated decline of 2.9% in the current year, attributable to a drop in the number of housing transfers.Rising population numbers, limited housing supply growth and low interest rates have increased demand for residential property over the past five years. This has significantly increased residential housing prices...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 15-20
6.7%
Forecast Growth 20-25
Profit
Employment
11,191
Businesses
11,248
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising property prices have contributed to the industry's strong performance
  • Most industry revenue is derived from the residential property segment
  • Increasing apartment sales as a share of total sales are likely to constrain property price growth
  • Industry Report - Starting a New Business Chapter

    The industry is characterised by moderate barriers to entry. Because most operators rent their premises and can operate with a small number of staff, the initial capital outlay to establish a real estate agency is fairly low. However, industry activities generally require highly skilled staff and a strong reputation. While real estate professionals can use their own skills to establish a new firm, others will have to offer competitive salary packages to acquire skilled staff that can lead a property sales team. Additionally, because real estate agents are dealing with expensive assets it is important for firms to establish a positive reputation and develop trust with potential clients. New...purchase to read more.

    Additional Insights for the Real Estate Services Industry

    IBISWorld has determined the most important Key Success Factors for the Real Estate Services are:

  • Membership of joint marketing/distribution operations
  • Market research and understanding
  • Access to a highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Mortgage affordability and Number of property transfers in the Real Estate Services industry impact industry performance..

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    What's in this report

    What is the Real Estate Services in New Zealand Industry?

    Industry operators are mainly engaged in valuing, purchasing, selling, managing or renting real estate on behalf of others.

    Industry Products
  • Property sales
  • Property leasing
  • Property management
  • Other services
  • Industry Activities
  • Real estate brokering services
  • Real estate agency services
  • Real estate auctioning services
  • Property management services
  • Property rental agency services
  • Real estate valuation services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Mortgage affordability
  • Number of property transfers
  • Residential housing loan rates
  • Residential housing prices

  • Current Performance
  • Residential price growth
  • Lending restrictions
  • Commercial property
  • Profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Cooling residential market
  • Government policies
  • Commercial concerns
  • Table: Real Estate Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Funds Management and Other Investment Services in New Zealand
  • Commercial Property Operators in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Architectural and Design Services in New Zealand
  • Commercial Property Operators in New Zealand
  • Wireless Telecommunications Carriers in New Zealand

  • Products & Services
  • Property sales
  • Property leasing
  • Property management
  • Other services
  • Chart: Real Estate Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household owner-occupiers
  • Property investors
  • Commercial businesses
  • Chart: Major Market Segmentation for the Real Estate Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Services Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Loan-To-Value Ratio (Lvr)
  • The value of a loan to the value of a property. A lower loan-to-value ratio is typically indicative of a higher deposit and therefore lower risk to lenders.
  • Owner-Occupiers
  • Property owners that also use the property, typically home owners that purchase a residential property to live in.
  • Vacancy Rate
  • A ratio that indicates how 'full' available property is, typically used for commercial property. A low vacancy rate indicates strong demand for property.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Real Estate Services in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Services in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Services in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Services in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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